The talking heads were in a good mood on Thursday as they cheered the bulls and talked about new highs for the market. With their third-straight win, it’s easy to see why they have become excited again and the close right at resistance is encouraging.
It is pretty amazing that we were almost able to call an exact close yesterday but here were our thoughts Wednesday morning (at 9am, before the market opened) as we have been expecting this rally back to resistance:
“Special Notice: Today’s bullish action is actually good if the bears hold resistance which will be Dow 13,200; S&P 1,400; and Nasdaq 3,050.
We have talked about the market doing a “back test” to previous levels and we showed you the downward trend developing in this week’s chart work. Since we have already taken half profits in quite a few trades, we should be okay on today’s pop but remember we still have over 3 weeks before they expire.”
The Dow surged 114 points, or 0.9%, to close at 13,204. The blue-chips stretched resistance up to a high of 13,227 before settling just above our target.
The S&P added 9 points, or 0.7%, and closed at 1,399.98. The index was thisclose to finishing above our 1,400 target and reached a high of 1,402.
The Nasdaq jumped 21 points, or 0.7%, and close right on 3,050. Tech kissed a high of 3,056 and the 52-week high is 3,134.
Folks, you can’t call it much better than that and futures are showing a lower start to today’s session.
What does it all mean? Let’s go talk about it inside the Members Area.